Cloud-computing company Nutanix has reportedly confirmed furloughing a total of 1,465 employees in the United States, nearly 25% of the company workforce globally.
According to a report by CRN, the company is reducing headcount due to “uncertain business conditions” stemming from the coronavirus pandemic.
Speaking to the news website CRN, the company said that it is implementing two separate, one-week unpaid furloughs affecting at least 1,465 employees that will occur on a rolling basis effective May 4 through July 26, followed by another round from August 3 through October 31.
In a statement to the website, Nutanix said that it is taking “deliberate and proactive expense-reduction measures that we believe to be prudent” as the company manages through the uncertain business conditions due to the COVID-19 pandemic.
“These measures include two, week-long furloughs for many of our employees over the course of the next six months. Nutanix services will remain fully available, and the furloughs have been structured so that our customers should experience little or no changes from the normal course during this period,” said Nutanix.
“We are taking this precautionary measure to help ensure our business remains healthy in the long term. Our philosophy as we navigate the COVID-19 pandemic is to do the ‘most good’ with the least amount of harm for all of our employees.”
It was also reported that earlier last week the company had informed the California Employment Development Department that it was temporarily standing down a total of 1,465 employees in California alone.
A total of 1,434 furloughs will come from the company’s headquarters in San Jose, while 31 employees will be furloughed in San Francisco, San Mateo, and Redding. Nutanix gave employees notice about the unpaid furloughs on April 21.
Nutanix said the furloughs will not be permanent. Nutanix did not comment on whether there are additional employees being furloughed who work outside of California.
The company reported a worldwide headcount of 6,100 during its second fiscal quarter, which ended Jan. 31, 2020, along with approximately 16,000 customers.
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